Market Overview

My goal is to be on stage with my computer and let you
see my screen and make sure you know what buttons to
press, where you’re getting in & out, how to calculate
risk, your targets — all of those things.
It’s real-life trading. Make sure you sign up!
- Jerremy Newsome

Wells Fargo Encouraged With Bob Evans Brand After Meeting With Post Management

Wells Fargo Encouraged With Bob Evans Brand After Meeting With Post Management

Post Holdings Inc (NYSE: POST) is progressing well with its latest acquisitions and its cereal execution remains strong, according to Wells Fargo.

The Analyst

Wells Fargo’s John Baumgartner maintains an Outperform rating on Post Holdings with a $114 price target.

The Thesis

An investor meeting with Post’s management provided increased visibility and triggered more confidence in the company’s strong execution, Baumgartner said.

Post made two acquisitions in 2017, namely Bob Evans Farms and Weetabix. The integration of Bob Evans continues to be on track and the vision for the segment is to expand it horizontally, across adjacent side dishes categories.

At Weetabix, Post is already planning for Brexit related contingencies, which could impact packaging availability and costs. The recent EBITDA margin of 34 percent appears sustainable by Weetabix. Even if some reinvestment reduces this to the low-30 percent range, the segment’s EBITDA margin will still be significantly higher than the mid-20 percent range it achieved when Post acquired the business, Baumgartner mentioned.

Strong execution has positioned Post's U.S. cereal business for continued outperformance. The company now intends to focus on “perfecting internal capabilities and driving organic growth, rather than engaging in new large-scale M&A,” the analyst wrote in the note.

Price Action

Shares of Post Holdings traded at $91.31 at time of publication, up 1.2 percent on the day.

Related Links:

Bank Of America Double Upgrades Hershey

Starbucks Analysts Have Lukewarm Reaction To China, Delivery Plans

Latest Ratings for POST

Jun 2019Initiates Coverage OnOutperform
May 2019MaintainsOutperformOutperform
May 2019UpgradesNeutralBuy

View More Analyst Ratings for POST
View the Latest Analyst Ratings

Posted-In: Bob Evans John Baumgartner Weetabix Wells FargoAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (POST)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Some Dividend ETFs Are Proving Their Durability

All The Best Amazon Electronics Deals Happening Right Now, Up To 43% Off: Razer, Samsung, BESTEK, Netgear, Altec Deals